Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Research

| More

Mold-Tek Packaging - Q2FY18 Result Update - Religare

Posted On: 2017-11-16 03:35:03

Better growth ahead

Mold-Tek Packaging's Consolidated Revenue and Net profit increased at 3.4% and 8.4% respectively on yoy basis. The company reported subdued quarter due to lacklustre demand mainly from paint and lubricant segments on account of GST transition. However, revenue from Food and FMCG segment remained strong with addition of new products and clients. We expect demand recovery in paint and lube segments from Q3FY18E, with normalization in demand post GST. Recommend Buy.

- Consolidated Net revenue for Q2FY18 increased by 3.4% to Rs. 78.8 cr compared to Rs. 76.2 cr led by growth in FMCG segment, which jumped to 15.5% of the overall sales from ~5% in the last financial year. Though paint (58% of sales) and lubricant (26.5% of sales) segments were sluggish on account of GST implementation, we expect both the segments to revive from Q3FY18E. Also sales from its Dubai facility increased by 15% from Rs. 1.9 cr to Rs. 2.1 cr qoq.

- Operational profit increased by 7.5% to Rs. 14 cr against Rs. 13 cr in the same quarter last fiscal led by fall in other expenses (down 9.9% yoy) and lower material cost (up 1.3% yoy). Operational margin improved to 17.7% compared to 17% in Q2FY17, as share of IML increased from 39.4% in Q2FY17 to 49% in Q2FY18 in volume terms.

- With improvement in operational efficiency and rising share of IML in total revenue, Consolidated Net profit increased to Rs. 7.1 cr compared to Rs. 6.6 cr on yoy basis, up 8.4. We expect PAT margin to improve in FY18-20E with rising share of IML, which currently stands close to ~49% in volume terms.

Outlook & Valuation:

After subdued growth in paint and lubes segments post GST, normalization in sales has been seen from September onwards. The construction of two new plants for Asian Paint at Mysore and Vizag is on track and commercial production from the same will start in the next fiscal. It is also expanding its Food and FMCG capacity at Hyderabad facility from 1,400 tons to 3,000 tons with an investment of Rs. 25 cr. We expect strong sales to continue from Food and FMCG segment, while paint and lubricant to revive from Q3FY18E. Also Dubai facility is getting good orders from many clients and is expected to break even in Q4FY18E. Considering improving demand outlook, strong balance sheet, robust return ratios, low debt and proactive management, we recommend a Buy on the stock with a target of Rs. 374.

Shares of Mold-Tek Packaging Limited was last trading in BSE at Rs.309.6 as compared to the previous close of Rs. 315.35. The total number of shares traded during the day was 1825 in over 71 trades.

The stock hit an intraday high of Rs. 317 and intraday low of 309.25. The net turnover during the day was Rs. 573408.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

KILPEST India Ltd Q2 consolidated net profit higher at Rs. 1.53 crore

VIMTA Labs Ltd H1FY19 net profit surges to Rs. 13.42 crores

Result Update: Central Depository Services (India) Ltd - BUY - TP Rs.290 - Kotak

Result Update: Blue Star Ltd - BUY - TP Rs.655 - Kotak

Result Update: Bluedart Express Ltd - ACCUMULATE - TP Rs.2875 - Kotak

Result Update: Mahindra Holidays & Resorts Ltd - BUY - TP Rs.315 - Kotak

Result Update: GHCL - BUY - TP Rs.270 - Kotak

Result Update: NIIT Ltd - BUY - TP Rs.110 - Kotak

Result Update: Quess Corp Ltd - BUY - TP Rs.1072 - Kotak

Result Update: Praj Industries Ltd - REDUCE - TP Rs.108 - Kotak

Result Update: Supreme Industries Ltd - BUY - TP Rs.1205 - Kotak

Granules India Ltd Q2 consolidated PAT climbs to Rs. 60.26 crores

Result Update: Kansai Nerolac Paints Ltd - BUY - TP Rs.485 - Kotak

Result Update: Zensar Technologies Ltd - ACCUMULATE - TP Rs.257 - Kotak

Bajaj Auto Ltd - OPM below estimate; Retain Accumulate - Emkay

Result Update: Bodal Chemicals Ltd - ACCUMULATE - TP Rs.130 - Kotak

Result Update: Kajaria Ceramics Ltd - BUY - TP Rs.500 - Kotak

Result Update: Persistent Systems Ltd - BUY - TP Rs.870 - Kotak

Auto Industry Volume Update: September 2018 - Kotak

Sector Update - Natural Gas - Kotak

Company Visit Note: Jindal Stainless Ltd - NOT RATED - Kotak

Company Update: Bajaj Electricals Ltd - ACCUMULATE - TP Rs.545 - Kotak

Telecom: 2QFY19 preview - no respite - Kotak

Sector Update: Natural Gas - Kotak

Company Update: NBCC (India) Ltd - BUY - TP Rs.95 - Kotak

Sector Update: Paper Industry - Kotak

Management Meet Update: Maharashtra Seamless Ltd - BUY - TP Rs.805 - Kotak

Mid-Year FY19 Bank Outlook: Stress in Non-Corporate Segments - India Ratings and Research

View on proposed banks merger

Company Update: GHCL - BUY - TP Rs.330 - Kotak

Company Update: MIRC Electronics Ltd - BUY - TP Rs.32 - Kotak

Company Visit Note: Finolex Industries Ltd - ACCUMULATE - TP Rs.671 - Kotak

Company Update: NMDC Ltd - BUY - TP Rs.125 - Kotak

Company Update: Allcargo Logistics Ltd - BUY - TP Rs.145 - Kotak

Company Update: Hindustan Zinc Ltd - ACCUMULATE - TP Rs.300

Buyback Offer: Larsen & Toubro Ltd - BUY - Buyback Price Rs.1500

Result Update: Vascon Engineers Ltd - BUY - TP Rs.48 - Kotak

Result Update: Voltamp Ltd - BUY - TP Rs.1320 - Kotak

Result Update: Bodal Chemicals Ltd - REDUCE - TP Rs.130 - Kotak

Result Update: MIRC Electronics Ltd - ACCUMULATE - TP Rs.32 - Kotak

Result Update: Shankara Building Products Ltd - BUY - TP Rs.2017 - Kotak

Result Update: Dilip Buildcon Ltd - BUY - TP Rs.1276 - Kotak

Result Update: Zensar Technologies Ltd - ACCUMULATE - TP Rs.1373 - Kotak

Result Update: The India Cements Ltd - REDUCE - TP Rs.112 - Kotak

Result Update: Nagarjuna Construction Co Ltd - BUY - TP Rs.151 - Kotak

Result Update: Berger Paints Ltd - SELL - TP Rs.305 - Kotak

Result Update: Allcargo Logistics Ltd - BUY - TP Rs.145 - Kotak

Result Update: Aksharchem (India) Ltd - REDUCE - TP Rs.533 - Kotak

Result Update: AIA Engineering Ltd - SELL - TP Rs.1700 - Kotak

Result Update: Cummins India Ltd - BUY - TP Rs.785 - Kotak







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2018